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Strategies: Travel niches open for entrepreneurs

If you want to start your own small business and have a desire to see the world, consider the many opportunities for entrepreneurs in the travel industry. If you think the Internet destroyed all small travel

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Strategies: Travel niches open for entrepreneurs

Rhonda Abrams, USA TODAY
7:14 a.m. EST February 1, 2013

The Internet hasn't killed the industry, merely changed it.

Whether it's organizing trips to learn to tango in Argentina, ride horses in Ireland or run marathons around around the world, today's travel entrepreneurs have learned that niches make money.(Photo: Daniel Garcia, AFP/Getty Images)

Story Highlights

The number of travel agencies has shrunk by more than half since 1995

But the survivors are smaller, more nimble, more specialized

And people who were in love with the Internet are finding they like a personal touch

Recently, I was invited on a flight with leaders in the travel industry and had a chance to explore new prospects for travel entrepreneurs with some of the best thinkers in the field. British Airways operates a 32-seat, all-business-class flight between London City Airport and New York City, perfect for business travelers.

CBS Travel Editor Peter Greenberg was taping his radio show during the flight, and I was to be interviewed about small-business travel for his Feb. 2 program. (You can hear it at www.PeterGreenberg.com.)

At almost 9% of America's total gross domestic product, generating more than a trillion dollars a year, travel and tourism represent a big chunk of the overall economy. And small businesses get a share of that.

"A lot of young people are bringing exciting new approaches," said Arnie Weissmann, senior vice president and editor-in-chief of Travel Weekly. "People predicted that travel agencies would disappear, but they're still here. In 1995, there were 36,000 agencies; there are 14,000 today."

"You won't see necessarily see the travel agency in a strip mall or on Main Street," Weissmann said. "Many of today's new travel agencies are home based. They seem invisible. But they've reduced their overhead and lowered the bar for entry into the field."

Two segments of travel agencies are doing particularly well: luxury/upscale travel and niche travel, he said.

"Any area in which a geographic location intersects with a special interest, there's an opportunity," Weissmann said. For instance, you could specialize in tango trips to South America, horseback riding trips to Ireland, culinary trips to Italy.

"Start with what you know and love. If you run marathons, organize trips around marathons," he said. And go the extra mile to stand out. Weissman cites a personal trainer who organized wellness trips, including a Maasai Warrior Boot Camp in Kenya, providing pre-trip and post-trip regimens to participants.

Greenberg's advice to entrepreneurs wanting to get into the travel business reflected the same sentiment: "We live in a world of specialization. You have to have value added. You need to offer something no one else has."

"It's not your grandfather's travel agency anymore," Weissmann said. "You can't just be an order taker. You have to provide a service. If you provide a substantial service, you can collect fees from travelers as well as commissions."

If Weissmann were starting a travel agency today, "I would build in lots of surprises that makes customers say, 'Wow!' For instance, a man wanted to give his wife a special 50th birthday trip, and she was enamored with Italy. His travel agent not only planned a romantic tour but hired young men to whistle at the wife in Italy."

Be entrepreneurial in your approach to a travel-related business.

Weissmann suggests independent travel agents or small agencies distinguish themselves by being able to provide services for all a traveler's needs.

"Find places to board their pets," he said. "Make sure there's fresh milk in their refrigerator when they return. Collect their mail. Do everything associated with the trip — for a fee, of course."

Greenberg was similarly upbeat about the possibilities for those seeking to create travel businesses or pursue travel careers.

"There's lots of disruption in the travel industry," he said. "Interestingly, Internet travel sites are hiring more people to actually go out and talk to customers. It's 'back to the future' in the sense of people talking face to face, not online. As much as we embrace high tech (in the travel industry), we also need to embrace high touch.

"I'm a big fan of the Internet for information, but I make deals in person," Greenberg said.

If you can come up with a unique concept, tour operators are out there to help make your concept work.